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Customs News Bulletin

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22 April 2015

 

 

Latest News

ANIMAL DISEASES ACT: IMPORT REQUIREMENTS FOR CATTLE, SHEEP AND GOATS FROM BOTSWANA, LESOTHO, NAMIBIA AND SWAZILAND: AMENDMENT

(Comments due by 17 May 2015)

The Department of Agriculture, Forestry and Fisheries published a notice titled “PUBLICATION OF NOTICE ON THE PROPOSED REVISED IMPORT REQUIREMENTS FOR CATTLE, SHEEP AND GOATS FROM BOTSWANA, LESOTHO, NAMIBIA AND SWAZILAND”.

The Minister of Agriculture, Forestry and Fisheries invited public comments on the notice under the Animal Diseases Act, 1984 (Act No. 35 of 1984) on the proposed revised import requirements for cattle, sheep and goats from Botswana, Lesotho, Namibia and Swaziland (BLNS).

The notice was published to give effect to South Africa’s commitments under the World Trade Organization (WTO) Agreement on the Application of Sanitary and Phytosanitary Measures (SPS agreement).

It is stated in the notice that the Agreement has a two-fold objective which aims to both recognise the sovereign right of members to provide the level of health protection they deem appropriate; and secondly to ensure that SPS measures do not represent unnecessary, arbitrary, scientifically unjustifiable, or disguised restrictions on international trade. The Agreement encourages Members to use international standards, guidelines and recommendations where they exist.

Articles 2 and 3 of the SPS Agreement state:

“Article 2:

Members shall ensure that their sanitary and phytosanitary measures do not arbitrarily or unjustifiably discriminate between Members where identical or similar conditions prevail, including between their own territory and that of other Members. Sanitary and phytosanitary measures shall not be applied in a manner which would constitute a disguised restriction on international trade."

Article 3:

To harmonize sanitary and phytosanitary measures on as wide a basis as possible, Members shall base their sanitary or phytosanitary measures on international standards, guidelines or recommendations, where they exist, except as otherwise provided for in this Agreement, and in particular in paragraph 3.

Sanitary or phytosanitary measures which conform to international standards, guidelines or recommendations shall be deemed to be necessary to protect human, animal or plant life or health, and presumed to be consistent with the relevant provisions of this Agreement and of GAIT 1994."

The South African National Department of Agriculture, Forestry and Fisheries decided in August 2013 that the current requirements for the import of cattle, sheep and goats from Botswana, Lesotho, Namibia and Swaziland (BLNS) needed to be reviewed. The aforementioned countries are considered to have a similar disease status; however the import requirements for certain of the countries remained very strict in comparison to others.

In an effort to remain consistent with the SPS agreement, the import requirements for cattle, sheep and goats from BLNS were revised and harmonized.

The Directorate of Animal Health notified all relevant stakeholders and importers via a letter distributed on 3 February 2014 of the revised requirements. The letter also served as a notice of the implementation date of 1 May 2014.

It was decided decided to suspend the implementation of the revised import conditions for livestock from BLNS on 26 August 2014 with immediate effect until an adequate consultation process has been followed, following a successful objection lodged in terms of section 23 of the Animal Diseases Act, 1984 (Act No. 35 of 1984) on the basis of non-adherence to the spirit of the Promotion of Administrative Justice Act, 2000 (Act 3 of 2000).

The Department therefore invites the public is therefore invited to make comments on the revised import requirements for cattle, sheep and goats from Namibia, Botswana, Lesotho and Swaziland. The above-mentioned revised requirements are available on the DAFF website (www.daff.gov.za) for public viewing, at the following route: Branches Agricultural Production, Health & Food Safety Animal Health Import/Export Policy Unit Import Proposed revised import requirements for cattle, sheep and goats from Botswana, Lesotho, Namibia and Swaziland.

All comments must be sent to BLNSlivestock@daff.gov.za. Only comments submitted within 30 days of the date of this notice will be considered.

Alternatively, comments can also be sent to:

The Director

Directorate: Animal Health

Department of Agriculture, Forestry and Fisheries,

Private Bag X138,

Pretoria 0001

(Tel.: +27 12 319 7456)

OR

Fax: +27 12 329 7218

The notice (Notice 349 of 2015) can be downloaded at http://www.gov.za/sites/www.gov.za/files/38701_gen349.pdf

 

Customs Tariff Applications and Outstanding Tariff Amendments

The International Trade Administration Commission (ITAC) is responsible for tariff investigations, amendments, and trade remedies in South Africa and on behalf of SACU.

Tariff investigations include: Increases in the customs duty rates in Schedule No. 1 Part 1 of Jacobsens. These applications apply to all the SACU Countries, and, if amended, thus have the potential to affect the import duty rates in Botswana, Lesotho, Namibia, Swaziland and South Africa.

Reductions in the customs duty rates in Schedule No. 1 Part 1. These applications apply to all the SACU Countries, and, if amended, thus have the potential to affect the import duty rates in Botswana, Lesotho, Namibia, Swaziland and South Africa.

Rebates of duty on products, available in the Southern African Customs Union (SACU), for use in the manufacture of goods, as published in Schedule No. 3 Part 1, and in Schedule No. 4 of Jacobsens. Schedule No. 3 Part 1 and Schedule No. 4, are identical in all the SACU Countries.

Rebates of duty on inputs used in the manufacture of goods for export, as published in Schedule No. 3 Part 2 and in item 470.00. These provisions apply to all the SACU Countries.

Refunds of duties and drawbacks of duties as provided for in Schedule No. 5. These provisions are identical in the all the SACU Countries.

Trade remedies include: Anti-dumping duties (in Schedule No. 2 Part 1 of Jacobsens), countervailing duties to counteract subsidisation in foreign countries (in Schedule No. 2 Part 2), and safeguard duties (Schedule No. 2 Part 3), which are imposed as measures when a surge of imports is threatening to overwhelm a domestic producer, in accordance with domestic law and regulations and consistent with WTO rules.

Dumping is defined as a situation where imported goods are being sold at prices lower than in the country of origin, and also causing financial injury to domestic producers of such goods. In other words, there should be a demonstrated causal link between the dumping and the injury experienced.

To remedy such unfair pricing, ITAC may, at times, recommend the imposition of substantial duties on imports or duties that are equivalent to the dumping margin (or to the margin of injury, if this margin is lower).

Countervailing investigations are conducted to determine whether to impose countervailing duties to protect a domestic industry against the unfair trade practice of proven subsidised imports from foreign competitors that cause material injury to a domestic producer.

Safeguard measures, can be introduced to protect a domestic industry against unforeseen and overwhelming foreign competition and not necessarily against unfair trade, like the previous two instruments.

In the WTO system, a member may take a safeguard action, which is, restricting imports temporarily in the face of a sustained increase in imports that is causing serious injury to the domestic producer of like products. Safeguard measures are universally applied to all countries, unlike anti-dumping and countervailing duties that are aimed at a specific firm or country.

Schedule No. 2 is identical in all the SACU Countries.

ITAC received and published three applications to amend the tariff:

1. The notice relates to the review of rebate item 316.17 for semi-knocked down television assembling.

ITAC Ref. 23/2014.

Enquiries:

Mr Njabulo Mahlalela -

Tel: (012) 394 3684

E-mail: nmahlalela@itac.org.za

Mr Dumisani Mbambo -

Tel: (012) 394 3743

E-mail dmbambo@itac.org.za

2. Increase in the rate of customs duty on adhesive bandages classifiable under tariff subheading 3005.10 from free to 20%.

ITAC Ref. 14/2014.

Enquiries:

Dolly Ngobeni -

Tel: (012) 394 3667

Fax: (012) 394 4667

E-mail: ngobeni@itac.org.za

Barbara Moeng -

Tel: (012) 394 3623

Fax: (012) 394 4623

E-mail: bmoeng@itac.org.za

3. Creation of rebate of full duty on steel panels with an inner core of Portland cement classifiable in tariff subheading 7308.90.90 for the manufacture of elevated (raised) flooring systems for buildings classifiable in tariff subheading 7308.90.90.

ITAC Ref. 21/2014.

Mr S Tsabalala -

Tel: (012) 394 3739

E-mail: stsabalala@itac.org.za

The Notice (Government Notice R. 245 of 2015) was published in Government Gazette 38574 on 20 March 2015. Comments are due by 17 April 2015.

 

 

Customs Tariff Amendments

With the exception of certain parts of Schedule No. 1, such as Schedule No. 1 Part 2 (excise duties), Schedule No. 1 Part 3 (environmental levies) Schedule No. 1 Part 5 (fuel and road accident fund levies), the other parts of the tariff is amended by SARS based on recommendations made by ITAC resulting from the investigations relating to Customs Tariff Applications received by them. The ITAC then investigates and makes recommendations to the Minister of Trade and Industry, who requests the Minister of Finance to amend the Tariff in line with the ITAC’s recommendations. SARS is responsible for drafting the notices to amend the tariff, as well as for arranging for the publication of the notices in Government Gazettes.

During the annual budget speech by the Minister of Finance in February, it was determined that parts of the tariff that are not amended resulting from ITAC recommendations, must be amended through proposals that are tabled by the Minister of Finance.

Once a year big tariff amendments are published by SARS, which is in line with the commitments of South Africa and SACU under international trade agreements.

Under these amendments, which are either published in November or early in December, the import duties on goods are reduced under South Africa’s international trade commitments under existing trade agreements.

There were no tariff amendments at time of publication.

The latest tariff amendmentswere published in Government Gazette 38681 on 10 April 2015.

The rate of customs duty on lithium batteries classifiable in tariff subheading 8506.50.25 is reduced from 10% to free as recommended in ITAC Report 493.

Government Gazette 38681, R. 307, 10.04.2015, A1/1/1515

Tariff subheading 8507.10 is amended by the creation of two eight digit subheadings (8507.10.05 and 8507.10.10) to give effect to ITAC’s recommendation in Report No 491 to increase the rate of customs duty on lead acid batteries of a kind used for starting piston engines from 5% to 15%.

Government Gazette 38681, R. 308, 10.04.2015, A1/1/1516 

The tariff amendments were sent to subscribers under cover of Supplement 1047.

Download the latest Customs Watch to have access to the latest tariff amendments.

 

Customs Rule Amendments

The Customs and Excise Act is amended by the Minister of Finance. Certain provisions of the Act are supported by Customs and Excise Rules, which are prescribed by the Commission of SARS. These provisions are numbered in accordance with the sections of the Act. The rules are more user-friendly than the Act, and help to define provisions which would otherwise be unclear and difficult to interpret.

Forms are also prescribed by rule, and are published in the Schedule to the Rules.

Forms are also prescribed by rule, and are published in the Schedule to the Rules. 

There were no Rule amendments at time of publication.

The last rule amendment (DAR/144) was published on 27 March 2015 in Government Gazette 38603 under Notice R. 246.

Download the latest Customs Watch to have access to the latest tariff and rule amendments.

 

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Contact Information:

 

Contact the Author:

Mayuri Govender
Jacobsens Editor

Tel: 031-268 3273
e-mail to:
jacobsen@lexisnexis.co.za

 

Leon Marais
Independent Customs Consultant
Tel: 053-203 0727
e-mail to:
leon.marais@intekom.co.za

 

LexisNexis

 

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